An acute trust and a mental health provider in the West Midlands will compete to take over a neighbouring community trust after both were shortlisted as preferred bidders to run the struggling provider.

The Princess Royal Hospital in Telford could be forced to “temporarily” shut its accident and emergency department overnight because of staffing shortages, the trust’s chief operating officer has warned.

Two hospital trusts in the West Midlands are no longer accepting outpatient referrals for neurology services and another is refusing out of area referrals, due to recruitment difficulties and rising demand.